Insurance respondents taking part in an investment outlook survey in the United Kingdom were least optimistic about global financial markets in 2013, reports CAMRADATA Analytical Services Limited, an investment information specialist.

“It was the insurance respondents who were the gloomiest about the prospects for the year ahead,” CAMRADATA noted in a statement yesterday. The web-based survey in December involved pension fund, investment consultant, insurance company and asset manager users of a CAMRADATA online database and sought to gauge opinion about investment opportunities in 2013.

A chart in the survey report indicates about 70% of insurance respondents were somewhat pessimistic about prospects. “It appears that insurance companies are taking a somewhat more pessimistic view than asset managers about the global financial markets in 2013. Pension fund opinion is divided on what the future holds,” the report adds.

Asked what issues were likely to impact their organizations directly, CAMRADATA reports that respondents cited as the top three concerns regulation, the competitive environment and pressure on margins.

There was also further evidence that insurance investment managers were thinking more about the Solvency II regime with liability-matching strategies such as low-risk assets in line with their claims profile, the statement adds.

“Insurance companies unsurprisingly had a strong bias to fixed income, with the majority of respondents expecting in-flows into various types of bonds and cash,” notes the survey report. “However, as with the pension sector, there is a need for asset managers to be innovative and suggest or design non-standard products to meet the needs of the insurance companies and address the issues they are currently facing.”

CAMRADATA reports that respondents across the asset management, pension and insurance investment communities saw high-yield bonds as an attractively diversified investment in a continuing low-interest rate environment, both in terms of in-flow and returns. However, optimism about the investment environment ahead was tempered by the top three issues that continue to influence investor behaviour: the Euro crisis; continuing low interest rates; and the fallout from the U.S. fiscal cliff.

Related Topics

Monitor These Topics

DisclaimerNote: By submitting your comments you acknowledge that Canadian Underwriter has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Bringing Data Home
With the recent buzz generated around data, the migration from telematics in auto insurance to advanced analytics in homeowner risk is not surprising; perhaps it is even inevitable. Several factors have come together to push the quest for...

Rise of the Drones
The commercialization of drone technology is rapidly evolving and has created new insurance coverage issues that were not considered when current primary insurance policy language was originally developed.

21st Century Brokerage
The proliferation of digital technology into society and the global economy has begun to blur the physical and digital worlds, triggering every industry to redefine its technology strategy to maintain and grow business profitability.

Annual Statistical Issue
Providing a yearly comprehensive review of insurance company results in a format that is easy to use. It outlines and details insurance companies’ financial
performance, market breakdown, and individual company results using summary tables and indexes.
Digital Edition

SPECIAL FEATURE

National Insurance Marketer
From Aviation to Zebra Mussels, if you’re looking for markets for specialty, niche and non-standard risks - you’ll find it in the National Insurance
Marketer! The extremely popular buyers guide is used daily by brokers across Canada.
Digital Edition
Searchable Database